Veranda Learning Solutions reported a consolidated net profit of ₹338.7 million for the quarter ended June 30, 2026 (Q1FY27), marking a substantial improvement from the ₹59.2 million profit recorded in the same period last year. This turnaround is driven by robust top-line growth and effective cost management, despite operating margin compression. The result marks the company’s sixth consecutive quarter of positive profit after tax.

Consolidated revenue from operations rose 42% year-on-year to ₹1,495.4 million, up from ₹1,056.7 million in Q1FY26. The growth was broad-based across key segments, with Commerce revenue jumping 47% to ₹1,085.8 million and Government test preparation revenue increasing 38% to ₹325.2 million. Overall enrolments for the quarter grew by 35% to 1.03 lakh students, while collections increased by 27% to ₹1,650 million, highlighting strong demand across all segments.

Financial Performance

While revenue expanded significantly, earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at a slower pace, leading to margin contraction. EBITDA stood at ₹538.5 million, up 10% from ₹488.3 million in the prior year quarter. Consequently, the EBITDA margin declined by over 10 percentage points to 36.0% from 46.2%. Gross profit increased 36% to ₹946.0 million, with gross margins at 63%, down from 66% in Q1FY26.

| Metric: | Q1FY27 | Q1FY26 | Change | | ---: | :--- | :--- | :--- | | Revenue: | ₹1,495.4 million | ₹1,056.7 million | +41.9% | | EBITDA: | ₹538.5 million | ₹488.3 million | +10.2% | | EBITDA Margin: | 36.0% | 46.2% | -10.2 ppts | | Net Profit: | ₹338.7 million | ₹59.2 million | +471.0% | | Enrolments: | 103,963 | 77,264 | +35% | | Collections: | ₹1,650 million | ₹1,300 million | +27% |

The company’s standalone results showed a different picture, with the parent entity reporting a net loss of ₹0.7 million compared to a profit of ₹0.4 million in the previous year. Standalone revenue declined 53% to ₹57.9 million, reflecting the group’s structure where most operational activities are housed within subsidiaries.

Segmental Insights

The Commerce segment remained the largest contributor, accounting for 73% of total segment revenue at ₹1,085.8 million. It also delivered the highest segment result of ₹408.6 million. The Government test preparation segment saw its result improve to ₹42.0 million from ₹20.1 million, while Vocational education revenue surged 821% to ₹86.7 million, though it contributed only ₹19.7 million to segment results.

Commerce Test Prep offline saw 28 All India Ranks and 150+ UK ACCA enrolments, achieving 60% of its full-year target. Online enrolments grew 82% year-on-year. Government Test Prep recorded 15,724 admissions, a 28% increase, led by TNPSC (+52%) and Railways (+100%).

What the Numbers Show

A key divergence exists between top-line growth and operating profitability. While revenue surged by approximately 42%, EBITDA grew by only 10%, indicating that costs are rising faster than sales. This suggests either increased investment in customer acquisition (advertisement expenses rose 60% to ₹86.7 million) or a shift towards lower-margin business mixes. However, the bottom line benefited significantly from a tax benefit of ₹73.6 million relating to earlier years and a sharp decline in finance costs, which fell 69% to ₹81.0 million from ₹262.0 million, boosting the net profit figure beyond what operational improvements alone would suggest.

Corporate Developments

The company announced the completion of the amalgamation of Veranda K-12 Learning Solutions Private Limited with its wholly-owned subsidiary, Veranda Administrative Learning Solutions Private Limited (VALS). The scheme became effective on August 11, 2026, following NCLT approval. As a result, VALS no longer requires registration as a Core Investment Company with the Reserve Bank of India.

Additionally, the Board approved a Composite Scheme of arrangement involving the merger of Veranda XL Learning Solutions Private Limited with the Company and the demerger of the Group’s Commerce Business into J.K.Shah Commerce Education Limited. The scheme is pending final statutory approvals. Orders on the demerger scheme were reserved on July 20, 2026, following the filing of the Court Convened Meeting outcome with the NCLT. Upon approval, JK Shah Commerce Education Limited will be separately listed, enabling focused capital allocation. Every Veranda shareholder will receive one share in the newly listed entity at no additional cost.

The statutory auditors, Suresh Surana & Associates LLP, issued an unmodified conclusion on the unaudited consolidated and standalone financial results.

Veranda Learning Solutions Limited shareholders overwhelmingly approved the reappointment of Kalpathi S Suresh as Chairman & Managing Director during its 8th Annual General Meeting (AGM) held on August 06, 2026. The meeting, conducted via Video Conferencing / Other Audio Video Means (VC/OAVM), also saw the adoption of audited financial statements for FY26 and the appointment of Suresh Surana & Associates LLP as statutory auditors, ensuring leadership continuity and governance stability for the education technology firm.

The proceedings were governed by Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. S. Lakshminarayanan, Non-Executive Independent Director and Chairman of the Nomination & Remuneration Committee, presided over the meeting in the absence of Chairman Kalpathi S. Suresh, who could not attend due to family commitments. Other directors absent included Kalpathi S. Aghoram and Kalpathi S. Ganesh. The meeting commenced at 11.30 A.M. and concluded at 12.20 P.M., with a requisite quorum present throughout.

Key Resolutions Passed

Shareholders voted on three ordinary resolutions and one special resolution. The detailed outcomes, as per the Consolidated Scrutinizer’s Report dated August 07, 2026, are listed below:

Ms. Kalpathi A Archana (DIN: 05331133) was appointed as a director upon retiring by rotation. For the role of statutory auditors for the ensuing term, shareholders approved M/s. Suresh Surana & Associates LLP, Chartered Accountants (FRN: 121750W / W100010).

Voting Analysis

The voting results reveal strong promoter support across all agenda items. Promoter and Promoter Group shareholders, holding 32,507,850 shares, participated actively via e-voting. Their participation rate was 99.89% of outstanding shares, with all votes cast in favor of every resolution. Public institutional investors held 3,339,154 shares but showed minimal participation, with only 24,643 votes polled (0.74% of outstanding shares). Notably, public institutions voted against the appointment of Ms. Kalpathi A Archana, casting 24,645 votes against, which accounted for 0.06% of total valid votes cast. However, this dissent did not affect the passage of the resolution, which received 99.94% support overall.

Public non-institutional investors held 60,503,843 shares, with a participation rate of 9.28%. They cast 5,612,386 votes, predominantly in favor of all resolutions. The total number of shareholders on the record date of July 30, 2026, was 12,621. Remote e-voting was facilitated through Central Depository Services (India) Limited (CDSL) from August 03, 2026, at 09.00 A.M. to August 05, 2026, at 05.00 P.M.

Governance and Compliance Updates

The Chairman informed members that the Statutory Auditors' Reports on both standalone and consolidated financial statements, along with the Secretarial Audit Report for FY26, contained no qualifications, reservations, adverse remarks, or disclaimers. These reports were taken as read during the meeting. A significant procedural update involved the circulation of the Annual Report. The company had initially circulated the report electronically but issued a revised version on July 30, 2026, to correct typographical errors. Management clarified that these corrections did not impact the financial statements or introduce any material changes to the report's contents.

Mr. S. Sandeep of S. S. Sandeep & Associates, Practicing Company Secretary, served as the Scrutinizer for the process. The consolidated voting results were intimated to the stock exchanges within two working days of the meeting's conclusion, adhering to regulatory timelines.